RAK Properties has appointed Arqaam Securities as a liquidity provider for its shares on the Abu Dhabi Securities Exchange (ADX).
Arqaam Securities will actively manage liquidity for RAK Properties’ shares by maintaining two-way quotes within a structured mandate, and also initiate research coverage on the company.
RAK Properties enhances investor access
The move will optimise RAK Properties’ price discovery and narrow bid-ask spreads, ensuring efficient trading. Arqaam Securities’ ownership in RAK Properties will not exceed 5 per cent of the total listed shares, which is in full compliance with ADX and SCA regulations.
Arqaam Securities is regulated by the UAE Securities and Commodities Authority (SCA).
Liquidity providers are regulated financial institutions that act as intermediaries in the securities markets. They buy large volumes of securities from the companies that issue them and then distribute them in batches to financial firms, which then make them available directly to retail investors. They simultaneously buy and sell shares to ensure it is always available on demand.
RAK Properties’ move is a strategic step to enhance market depth and accessibility for institutional and retail investors. With foreign ownership permitted up to 49 per cent, the Ras Al Khaimah real estate company said it remains committed to fostering an active and liquid trading environment.
Sameh Muhtadi, Chief Executive Officer, RAK Properties, commented: “Ensuring robust market liquidity is central to our commitment to delivering long-term shareholder value.
“Partnering with Arqaam Securities, a recognised leader in liquidity provision, aligns with our efforts to enhance trading efficiency and market accessibility for investors. As increasing numbers of institutional and retail investors look not only to the Emirate of Ras Al Khaimah, but also its major listed entities, it is crucial that we engage with partners who can support our ambitious growth targets.”
Veselin Tilev, Head of Market Making at Arqaam Securities, added: “We appreciate the trust placed in us by RAK Properties and look forward to leveraging our expertise to enhance liquidity and optimise market dynamics on ADX. Our dedicated market-making services are designed to support active and efficient trading, reinforcing investor engagement with RAK Properties’ shares.”
Earlier this year, RAK Properties announced record results for FY2024, with a 40 per cent year-on-year revenue increase to AED1.4 billion ($381 million), up from AED1 billion ($272 million) in 2023. Profit before tax increased by 52 per cent to AED308 million ($84 million), while net profit grew by 39 per cent to AED281 million ($276 million).
The company has set ambitious plans for 2025, centred around Mina, its flagship destination. The first two projects within this launch plan, Mirasol and SKAI, have been launched to great success in the first quarter.
